DTI approves Carlton-Granada merger

Tuesday, 7 October 2003 12:00 AM

The Government has given the go-ahead to a proposed merger between ITV broadcasters Carlton and Granada.

However, in a statement today, trade and industry secretary Patricia Hewitt said that the £3.8 billion merger would be subject to certain conditions.

She revealed in a statement that she had asked the companies to agree to a series of "behavioural remedies" aimed at limiting the impact of the merger on the television advertising market and on the remaining four ITV franchises.

The merged group will control more than half the UK's television advertising market. Under the conditions of the merger, recommended by the Competition Commission, the companies must devise strategies to protect advertisers from unfair competition by November 7th.

An independent adjudicator will be brought in to oversee the plans

The Government verdict falls short of asking Granada and Carlton to sell off their advertising sales sides, as had been demanded by advertisers. The companies argued that such a move would wipe out many of the benefits of a merger.

The two broadcasters control 12 of the 15 ITV franchises and will now be in a stronger position to provide serious competition to the BBC and BSkyB.

"A stronger ITV will be better able to invest in and provide programming of high quality, including regional programmes. Broadcasting as a whole will benefit," Ms Hewitt said.

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